Non Refundable Booking Deposits....

Hey All,

I've have a few bookings come through now where they have paid their deposit and that has been transferred to me. Some of these bookings aren't until early - mid next year.

I have a separate bank account set up with sub accounts for all income and expenses to go in and out of then once it reaches the 'float' amount I plan to take out whatever extra is in there and essentially pay ourselves with it and do as we please.

However, it doesn't feel right taking out the deposit money when they haven't even stayed yet. I realise it's non-refundable (except for extenuating circumstances) but I was wondering what others do in this situation?

Quarantine it until they've stayed and transfer it with the remainder of their balance when that comes through or treat it as money that's been earnt and put it all on black at the casino?

TIA!

 

You must have it listed on a non Airbnb platform. On Airbnb, no money goes to the host till 24 hours after the guest checks in. I wouldn't worry about using the money - it's not as if you're going to skip the country with a few deposits. You will have money elsewhere to cover the deposit if you need to give it back.
Scott

 

Thanks Scott, yes, also listed on Tripadvisor and Stayz.

This is true. Maybe it's just me but it just doesn't feel right being paid for something when the product or service hasn't been provided as yet but then again I don't want to not have a booking deposit either.

 

Odd that those platforms send money to the hosts before the stay commences. I bet that goes pear shaped sometimes and people spend the money and don't honour the booking.

 

My thoughts exactly. I'll have to see if there's any stats on hosts doing a runner with the money.

Just double checked and it's only Stayz that I've had the bookings with deposits come through but Stayz were also the ones with the most rigorous verification too. Not that I'm think that has too much to do with it.

 

If the guest doesn't stay, you'll have the next lot of income minus that money. Or if there is no stay for a while, stayz will send a request for the money back. But they give a lot of time before making that request to you, well over a month.

 

Just like a business that sells Gift Cards. They get the money in before any product leaves the shelf - and then if it is or isn't used - that's out of your control and you already have the money if it does eventuate.

As long as you have the cashflow for those times in extenuating circumstances - it's yours to cashflow whatever else you need the money for.

OPM and 'opportune' - doesn't get much better than that!

pinkboy

 

If they don't put money down then there's no incentive for them to not cancel 1 week out and pick a different place that has dropped their prices. Better for them to give the deposit.

 

With Airbnb, the host decides on cancellation setting from 'flexible' to 'strict'. At the strict end, if somebody cancels a booking, the host gets paid - Airbnb have already collected the money from the guest when the booking was made. My cancellation policy is 'flexible', but in over five years, I have only had a couple of cancellations and those spots were filled.
It has been a bigger annoyance for me with film shoots. I have had a few of them cancel a couple of days out and they don't pay deposits. The daily rate for a shoot is worth the risk, though.

 

I've got 3 and have strict. Wouldn't have it any other way.

 

Totally agree. My question was more around the funds that are transferred.

 

I have flexible and I think it helps get more bookings. In total, we have had one cancellation and ended up being awesome- as we had originally got the booking when we first listed it was for about $300 total and it happened to be the grand final weekend in Melbourne so we cheekily upped the price and ended up collecting close to $800